A company wants to make $100,000. This is what is referred to as their "target operating income". 
They have a product that sells for $80. 
The variable cost per item is $60 -- so every time they make an item it costs them $60.
Their total fixed cost is $60,000 -- so, no matter how many items they make they will have $60,000 in expenses.
Create the required table that determines the required revenue (per unit sales price X volume of items sold) to achieve the desired operating income. The table must look like the one down below

 

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Revenue $100/unit x 90 units = Variable costs $60/unit x 90 units = Contribution margin Fixed costs Desired (target) operating income = $9,000 5,400 $3,600 2.000 $1,600 Revenue $100/unit x 90 units = Variable costs $60/unit x 90 units = Contribution margin Fixed costs Desired (target) operating income = $9,000 5,400 $3,600 2.000 $1,600

Answer rating: 100% (QA)

SOLUTION To determine the required revenue to achieve the desired operating income we can use the fo... View the full answer